J-Curve

A pattern where an investment or economic indicator initially worsens before improving, producing a chart shape resembling the letter J. In private equity and venture capital, the J-curve describes how funds typically show negative returns in their early years (due to management fees and unrealized investments) before gains materialize as portfolio companies mature and exit. In macroeconomics, it describes how a country's trade balance initially deteriorates after currency devaluation before eventually improving.